Medihelp’s national scale ZAR currency claims paying ability rating has been reaffirmed at AA- (double A minus).
Primary factors supporting the rating include the successive net surpluses registered since 2003, which has cumulatively added a significant R640m to reserves over the review period to FYE10 (the exception was 2009, due to a deliberately low pricing structure implemented for the year). Furthermore, given the large size of its membership base, Medihelp is able realise significant scale efficiencies. Accordingly, the scheme continues to report favourable relative non-healthcare costs compared to the industry.
Although the strong growth evidenced in Medihelp’s principal membership levels over the past two years has resulted in a decline in the scheme’s statutory solvency margin, this remains above the minimum regulatory requirement. Note was also taken of the sizeable and conservative investment portfolio, with cash coverage ratios remaining comfortable relative to industry norms. Whilst Medihelp’s underlying risk pool displays an average age profile well above industry norms, cognisance is, however, taken of the scheme’s demonstrated ability to appropriately manage the risks associated with older and higher claiming membership profiles.
Stephan Waurick https://globalratings.net/uploads/files/July_2011.pdf
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